Ship Finance International Limited (NYSE: SFL) (Ship Finance) announces that it has acquired two 2016-built 19,400 TEU container vessels and contracted the vessels until late 2033, or for nearly 15 years, to a leading container line on long-term bareboat charters.
The contracts increase the Company’s fixed rate charter backlog by nearly $470 million, and the charterer has agreed to purchase obligations at the end of the charter period, effectively eliminating residual risk.
Ole B. Hjertaker, CEO of Ship Finance Management AS, said in a comment: “This new acquisition broadens our relationship with one of the world’s largest liner companies. Over the last nine months we have added more than $1.2 billion to our charter backlog in a series of accretive acquisitions. In this case, our equity investment is limited to approximately $15 million per vessels as we have secured non-recourse lease financing with a tenure matching the charter period. We believe that our strong balance sheet and ability to source attractively priced capital will allow us to continue to grow our charter backlog and cash flow visibility going forward.”